Cyprus’ Sovereign Rating Upgraded ; Outlook Remains Positive
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Summary
Ref: CY1 9 CRA00- 1 15 th March 2019
Cyprus’ Sovereign Rating Upgraded ; Outlook Remains Positive
RATING ACTION
Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, today announced that it has upgraded the Republic of Cyprus’ Long-Term Foreign Currency (LT FC) Issuer Rating to ‘BB+’ from ‘BB’ and affirmed its Short-Term Foreign Currency (ST FC) Rating at ‘B’. The Outlook for the Long-T erm ratings remains Positive.
RATING RATIONALE
The rating upgrade reflects the continued strong performance of the economy, as well as improving public finances and the ongoing recovery of the banking sector. In addition, legislative and structural reforms have helped to increase Cyprus’ institutional strength.
The economy continued its robust recovery in 2018, with real output growth of 3.9% (4.2% in 2017) helping to return it to its pre-crisis size in nominal terms. Growth was broad…